Last year wasn’t a good year for new companies to breakout, but market observers believe this is the year that will all change. Take advantage of the increased initial public offering (IPO) activity with the use of the IPO-related exchange traded fund (ETF).
A recent survey done by the U.S. audit, tax and advisory firm KPMB LLP revealed that venture capital investment is on the rise again and the venture capital community expects IPO activity and valuations of venture-backed companies to continue its uptrend, writes Manuel Goncalves for PR Newswire.
A majority of venture capitalists and entrepreneurs see cleantech as the next hot sector. Other attractive investment areas include life sciences, as well as mobile and wireless technologies. Additionally, China and India are expected to see more investments in 2010, and Brazil, Israel and Southeast Asia will see increased venture capital activity.
KPMG also discovered that a majority of VC’s expect revenue to increase in their portfolio companies.
Life insurer Symetra Financial Corp. and household-paper-products maker Cellu Tissue Holdings Inc. are scheduled to price Jan. 21 and trade the following day, becoming the first IPOs of the year set to debut on the New York Stock Exchange, reports Lynn Cowan for The Wall Street Journal. A Chinese bot-fuel producer Andatee China Marine Fuel Services Corp. may also debut on the Nasdaq Stock Market in the same week. [How the IPO ETF works.]
The last few weeks of 2009 proved to be poor trading for the IPO market, and several companies ultimately decided to pull their offerings after price failings. Analysts and bankers believe this year will be better for IPOs, but will only remain so if investor reception and broader stock-market conditions remain positive. [How an ETF can solve IPO conundrum.]
For more information on IPOs, visit our IPOs category.
- First Trust IPOX-100 (NYSEArca: FPX)
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.